Practitioners and industry advocates aim to preserve the coveted like-kind exchange tax-deferred treatment that could be threatened if Congress considers revenue-raising ideas proposed by former House Ways and Means Committee Chair Dave Camp.Camp’s Tax Reform Act of 2014 lowered individual and corporate rates and paid for it with more than 200 revenue raisers that were vetted and priced.
Thus, proponents continue to lobby for retaining like-kind exchanges in tax reform.By mid-year, it plans to have just one or two rigs in the Eagle Ford.The company on Thursday during a call with analysts said that it will focus instead on its “bread and butter” – the Permian Basin.“I mean, the point is why drill them in this price environment when things are going to improve?” Apache President and CEO John Christmann asked analysts.First, the EIA estimates legacy gas production changes by comparing production between two consecutive months.
In the first month, EIA sums the production from all producing wells in that period (100 B/d) and then in the second month sums the production from the same group of wells as the first month (75 B/d).
US oil production growth rates are slowing, and growth in Permian productivity has stalled out.
Permian rig productivity peaked in August 2016 at 707 barrels per rig and has declined to an estimated 597 barrels per rig.
Although Camp’s draft plan didn’t lead to comprehensive tax reform, tax observers believe that Camp’s proposals will continue to be the go-to source to offset corporate tax rate reductions in tax reform efforts in Washington. Rosenthal of the Urban-Brookings Tax Policy Center, Congress will likely return to a more conventional approach of “cutting rates and offsetting some of the revenue lost by closing some loopholes,” rather than comprehensive tax reform.
He predicts that the destination-based cash flow tax proposal “will come to an end mainly because the retailers are pretty loud and influential.” “The trouble is that we’ve squeezed a lot of loopholes out of the code, and so the few that are left often have very fierce advocates and the like-kind exchange is one,” Rosenthal said.
had 12 rigs running in December on the eastern edge of the Eagle Ford Shale.